THE BOARD OF
COUNTY COMMISSIONERS
DURHAM, NORTH
CAROLINA
Monday, May 24, 2004
7:00 P.M. Regular Session
ACTION MINUTES--DRAFT
Place: Commissioners’ Room, second
floor, Durham County Government Administrative Complex, 200 E. Main Street, Durham,
NC
Present: Chairman Ellen W. Reckhow,
Vice-Chairman Joe W. Bowser, and Commissioners Philip R. Cousin Jr., Becky M. Heron, and Mary D. Jacobs
Absent: None
Presider: Chairman Reckhow
Opening of Regular
Session—Pledge
of Allegiance
Agenda Adjustments—Commissioner Cousin added a Closed
Session to the end of the agenda.
_________________________
Vice-Chairman Bowser made a motion
that the “Ethics Complaint" be moved to follow the consent agenda.
Commissioner Heron expressed that a number of citizens intended
to speak on this item. If the item were
moved, the citizens who had not yet arrived would be unaware of the time change
and may not be in attendance for the discussion.
Chairman Reckhow suggested moving the agenda item prior to
item No. 9, contingent upon the time element; it would not be heard earlier
than 8:15 p.m.
Announcement
Chairman Reckhow announced the following meetings to be held
about the Durham Comprehensive Plan: (1)
Eno Valley
Elementary School—May 27 (5:30 – 7:30);
(2) Southern High School—June 1 (5:30 – 7:30); (3) Southwest Elementary School—June
2 (5:30 – 7:30); and (4) Main Library—June 10 (3:00 – 5:00). She encouraged all citizens who are
interested in growth and development issues to attend one of the meetings. Additional information could be found on the
County and City websites. Copies of the
Plan were available at the Main Library.
Chairman Reckhow recognized the Boy Scouts in the audience
and asked Mr. Joe Kilsheimer to stand and introduce his troop. She thanked Mr. Kilsheimer for bringing the Scouts
to the meeting.
Minutes
Commissioner
Heron moved, seconded by Commissioner Cousin, to approve as submitted the April
26, 2004 BOCC/Public Health Board and the May 10, 2004 Regular Session Minutes
of the Board.
The motion carried
unanimously.
Acts of Caring
Award—Teen Diploma Academy
The National Association of Counties (NAC0) presented an
“Acts of Caring" Award to Durham County’s Teen
Diploma Academy
last month. Ms. Lucy Haagen and Mr. Fred
Foster Jr. of the Durham Literacy Council attended the event and were joined by
Congressman David Price.
The Acts of Caring Awards recognize top county volunteer
programs in the country that enhance and preserve the quality of life for America’s
communities.
May Anchor Award
Winner—Vivian Harris
Ms. Vivian Harris of the Durham Center
serves as Director of Standards and Records for the department. Ms. Harris chairs the “Best Practices Team"
and is cited for successfully leading the team as it “irons out issues and
potential problems". Interim Durham
Center Area Director
Ellen Holliman nominated Ms. Harris for her overall leadership as the
organization transitions due to Mental Health Reform. According to Ms. Holliman,
Ms. Harris “keeps the team focused on the issues at hand, which is yielding
good results".
Ms. Harris thanked the Board for the honor, accepting the
award and the $200 check from Chairman Reckhow.
FY 2004-2005
Recommended Budget
Durham County Manager Michael M. Ruffin formally presented
the recommended budget for FY 2004-2005 to the Board of County
Commissioners. This was in accordance
with N.C.G.S. 159-12(b), the Local Government and Fiscal Control Act.
COUNTY MANAGER’S RECOMMENDATION: The Manager recommended that the
Board receive his presentation.
County
Manager Ruffin gave an overview of the budget.
County Manager Ruffin announced the
dates of the upcoming budget meetings.
He noted that copies of the budget and the message are available at Durham County’s
libraries and the Durham County Government Administrative Complex. For additional information, he recommended
that citizens contact the Clerk’s Office, Budget Office, or the County Manager’s
Office. The message and presentation would
be available on the County’s website tomorrow.
Consent Agenda
Vice-Chairman
Bowser moved, seconded by Commissioner Heron, to approve the following consent
agenda items:
*a. Property
Tax Releases and Refunds for Fiscal Year 2003-04 (accept the April property tax
release and refund report as presented and authorize the Tax Assessor to adjust
the tax records as outlined by the report);
*b. Capital
Project Ordinance Amendment
No. 04CPA000014 (approve the use of Public School Building Funds for HVAC
upgrade at Neal Middle School);
d.Purchase of Total Containment Vessel
for $143,200—Emergency Management (approve the purchase from DHS Part II Grant Program
funds);
*e. First
Amendment to Service Contract for Services With Excelliant Services Inc.
(approve the amendment to the contract not to exceed $35,600 and authorize the Manager
to execute);
h.Lease Agreement to the
Coordinating Council for Senior Citizens, Durham Inc. (approve the agreement
and authorize the Manager to execute);
*i. Resolution
Adopting Policy on Closed Session Minutes (adopt the resolution with any
changes the Board desires);
j. Contract Amendment to
Wastewater Treatment Plant Improvements—Phase I Engineering Contract (authorize
the Manager to execute the amendment with McKim
& Creed,
PA in the amount of $112,000);
l. Air Quality Initiatives for Durham County
(instruct the Environmental Affairs Board to spearhead the initiatives for Durham County);
and
*m. Budget Ordinance Amendment No.
04BCC000074 and Capital Project Amendment No. 04CPA000016—Project No.: DC075-50
(approve the appropriation of $200,000 of Capital Financing Fund fund balance
to purchase 2.23 acres of land located on Shannon Road [Watson Property] for
the purpose of expanding the Southwest Branch Library).
The motion carried unanimously.
Consent Agenda
Items Removed for Citizen Comments
Consent Agenda Item No. f. JCPC
Recommendation for FY 2004-2005 JCPC/DJJDP Program Funding (approve the
recommended plan to allocate $561,475 in State funding for FY 04-05).
Chairman Reckhow removed this item for comment by Victoria
Peterson.
Consent Agenda Item No. g. Grant
Agreement to North Carolina Museum of Life and Science Inc. (approve the
agreement for $5,280,000 and authorize the County Manager
to execute).
Chairman Reckhow removed this item from the consent agenda
to allow comment by
Dr. E. Lavonia Allison.
Consent Agenda Item No. k. Budget
Ordinance Amendment No. 04BCC000072 and Capital Project Amendment No.
04CPA000015—Closing of 1986 and 1991
Bond Issuance Related Projects and Movement of Unspent Funds to the Debt
Service Fund (304) (approve the closing of the projects and related sub-funds
within the Capital Project Fund freeing up $579,310; transfer remaining
balances within these sub-funds to the Debt Service Fund to be used to pay
toward existing debt; and transfer General Fund fund balance ($161,556) to the
Little River Regional Park project to replace the moved 1986 and 19991 Bond
funds).
Dr. E. Lavonia Allison, PO Box
428, Durham, NC
27702, inquired about
the process by which school PTAs can obtain this funding.
Chairman Reckhow explained that applications for the Matching
Grants Program can be obtained by contacting Bill Renfrow, Budget Analyst.
Ms. Victoria Peterson, P.O. Box 101,
Durham, NC,
requested that some of the dollars be set aside for nonprofit programs that are
working to reduce the crime rate in Durham.
Ethics Complaint
Commissioner Heron moved, seconded
by Commissioner Cousin, to excuse Vice-Chairman Bowser from discussing and
voting on this agenda item.
The
motion carried unanimously.
Commissioner Heron moved that the
Board move forward with an investigation, and if the investigation warrants a
hearing, that the hearing follow promptly.
_________________________
Commissioner Cousin offered a
substitute motion: That the Board go on
record as discerning there is a difference between fact-finding and
witch-hunting, that the Board proceed with the matters as they pertain to the
County—those being the resolution of the audit that is to come before the Board
on the 7th of June, and also move with dispatch to put in place a
budget for the next fiscal year for the County of Durham.
Commissioner
Jacobs seconded the motion.
Commissioner Cousin called for the question.
The motion failed for
the lack of majority.
Ayes: Cousin and Jacobs
Noes: Heron and Reckhow
Commissioner
Heron moved that the Board receive the Manager’s overview of the audit and move
forward with an investigation. If the
investigation warrants a hearing, then the hearing would follow the
investigation.
Chairman Reckhow
referred to County Attorney Kitchen for advice.
County Attorney Kitchen stated his opinion that the
complaint is “going to die" without any action of the Board. The more prudent means is to say that it will
not be considered further. It is not
appropriate or in anyone’s best interest to have a complaint hanging. Attorney Kitchen recommended that the Board
consider this matter ended.
Interest Rate Swap
The Finance Department has been entertaining a proposal from
Rice Financial Products for the County to enter into an interest rate swap
agreement. This agreement is projected
to save the County almost $10,000,000 over a ten-year period in debt
service. The use of this savings should
be limited by the BOCC to 50% current budget and 50% designated for potential
increases in debt service due to the Swap arrangement.
During the worksession on May 3, 2004, Rice Financial Products
and Public Financial Management (PFM), a recognized expert in the area of Swaps,
made presentations to the Board. (PFM
was paid $10,000 to analyze the proposal and make a recommendation to the Board.)
Management recommends that Durham County
enter into an agreement with Rice Financial Products and believes that the arrangement
will reduce the County’s debt service.
Management also believes that the risks outlined in the PFM analysis can
be mitigated to an acceptable level. A
copy of the proposal has been provided to the LGC for its review and comment;
however, a response is not expected prior to this meeting. As such, the request is that the Board
authorize the Manager to execute a contract with Public Financial Management to
advise the County in the negotiation of such an arrangement in an amount not to
exceed $100,000. The scope of services
to be provided will include, but are not limited to, the following:
1. Review and comment on all Swap
documentation and business terms;
2. Evaluate credit enhancement and
other industry standards approaches to managing counterparty credit risk;
3. Negotiate the pricing terms and
final structure with the Swap provider;
4. Coordinate the closing of the
transaction; and
5. Provide the County with a memorandum
summarizing the results of our engagement, including an opinion that the
pricing of the Swap, as agreed to, represents fair value.
Should this arrangement be approved by the BOCC and closed,
all costs will be absorbed in the deal (no cash outlay by the County). However, to move the process forward, the
request is to approve a $100,000 appropriation from Fund Balance. Please note that our deal with PFM is on a
contingency basis—if the deal fails to close, the County owes nothing to PFM.
Once the deal has been negotiated, the proposal will be
presented to the BOCC for final approval, which would be subject to the
approval of the LGC.
RESOURCE PERSON(S): George K. Quick, Finance Director
COUNTY MANAGER’S RECOMMENDATION: The Manager recommended that the BOCC approve
the proposed deal with Rice Financial Products (subject to approval by the
LGC), authorize the Manager to enter into a contract with Public Financial
Management to act as our Swap advisor, and approve the Fund Balance
Appropriation.
Mr. Quick recommended that the Board:
1.
Authorize
the Manager to enter into a contract with Public Financial Management as our
financial advisor in an amount not to exceed $100,000.
2.
Allocate
$100,000 in Fund Balance appropriation as a source for payment. (From a technical standpoint, for the County
to enter into a contract, funds must be allocated for payment. However, the reality is that the money will
not be spent because all costs will be absorbed in the deal [no cash outlay by
the County]. The contract is on a
contingency basis—if the transaction fails to close, the County owes nothing. If the contract closes, the transaction will
fund the payment of these fees.)
3.
Authorize
the Finance Director to complete the negotiation and finalized the documents,
which will be presented at the June 7 Worksession. Approval would be subject to LGC approval.
Commissioner
Jacobs moved, seconded by Commissioner Cousin, that the Board approve the three
above-mentioned recommendations by Finance Director Quick.
The
motion carried unanimously.
Budget Ordinance
Amendment No. 04BCC000073—Emergency Medical Services Salary and Benefits
Funding
Commissioner Cousin moved, seconded
by Commissioner Jacobs, to approve the $417,029 appropriation of unrecognized
revenue of $150,000 from EMS patient income and $267,029 from General Fund
property taxes to support personnel expenditure increases in the EMS
department.
The motion carried unanimously.
Board
Appointments—Durham Appearance Commission and the Durham Bicycle and Pedestrian
Advisory Committee
The
following appointments were made:
Durham
Appearance Commission
John E. Felton (recommended by City-County Planning
Committee)
Karen Havighurst (recommended by City-County Planning
Committee)
Allyson Blyth Morrell (recommended by City-County Planning
Committee)
Durham Bicycle and Pedestrian Advisory Committee
Jimmy L. Gamble (recommended by City-County Planning Committee)
Adjournment—Chairman
Reckhow declared the meeting adjourned at 10:35 p.m.
Respectfully
submitted,
Vonda
C. Sessoms
